Outlook good for the Kingdom`s agro sector

A scooter is buried in harvested cassava ready to be transported to the market in Siem Reap province. SIEM REAP THMEY DAILY NEWS VIA FACEBOOK

Buoyed by year on year growth, the Kingdom`s agriculture sector remained positive about its growth potential this year, despite the looming threat of EU safeguard measures hanging over the country`s rice industry.

The Ministry of Agriculture, Forestry and Fisheries expressed optimism that this year would be another good year for the sector, with ministry spokesman Srey Vuthy saying many agro-processing factories are expected to commence operation this year.

"We have a fresh fruit processing factory, a cassava processing factory and a rice storage and dryer ready for full operation this year. All of these will ensure the market and add value to our products," he said.

New facilities

The first fresh fruit processing plant in Kampong Speu province, a South Korean-owned factory valued at $10 million, is expected to open this year and process more than 50,000 tonnes of fruit annually, including coconut, durian and mangosteen.

Hong Kong-based Green Leader Holdings Group Co Ltd, which announced its first cassava processing factory last year, plans to invest a total of $150 million in the cassava industry. Its Kratie province factory is expected to commence operations in February.

Vuthy said the facilities will bring more Cambodian agro-products to the international market.

"Our bananas are ready for export this year. The Ministry of Agriculture, Forestry and Fisheries will seek more investors looking for potential investments," he said.

Vuthy added that the ministry expects rice exports to increase this year.

"We are proud of our rice industry ? we now have standard and high capacity rice storage and drying [facilities], and we will boost our rice exports to China this year," he said.

The sector launched a number of rice facilities in Kampong Thom, Kampong Cham, Prey Veng, Takeo and Battambang provinces last year. However, the sector still encounters logistics and infrastructure challenges that need to be solved, Vuthy said.

"We need time to improve our logistics and infrastructure as well as electricity costs, in order to reduce the cost of production and compete with the international market," he said.